Investors in Invesco QQQ Trust (Symbol: QQQ) gained access to new options today for the October 16 expiration, with 206 days until expiration. Notably, a put contract at the $580.00 strike price is currently bid at $37.80, allowing sellers to effectively purchase shares at a cost basis of $542.20. This represents a discount of approximately 1% from the current trading price of $583.80, with a 59% chance of the contract expiring worthless, yielding a potential return of 6.52%.
On the calls side, a $600.00 strike price call contract has a current bid of $40.10. Should investors sell this covered call while owning shares at $583.80, they could achieve a total return of 9.64% if the stock is called away at expiration. This strike price is about 3% above the current trading price, with a 49% chance of the call expiring worthless, potentially yielding a 6.87% boost in returns.
The implied volatility for the put contract is 26%, while for the call it is 25%, with actual trailing twelve-month volatility calculated at 22%.
